Traders are discouraged with developments in the commodity market. Both gold and oil prices are falling today. Mounting fears about a protracted oil glut weigh on oil prices. Today, Brent crude fell to 45 US dollars 78 cents a barrel. North American light sweet crude sank to 43 dollars 23 cents a barrel. Meanwhile, the market is alert to the weekly report from Baker Hughes on US drilling activity. Analysts expect oil prices are set to decline no matter what figure is logged in the oil rig count. The major reason behind traders’ fears is that Nigeria and Libya are both preparing to ramp up their oil exports. Commodity strategists assume oil prices to fall below 40 US dollars a barrel by the end of 2016. Following oil prices, commodity currencies are also losing ground. The Russian ruble is no exception. It is giving in to the US dollar even despite the Bank of Russia decision to cut the key interest rate. The Russian regulator slashed the key interest rate by 50 basis points to 10% in line with analyst expectations. Traders are putting a high priority on the US Fed’s monetary policy that prevents the Russian ruble from fighting with the US dollar. Today, the dollar/ruble pair is trading at 65.03. Analysts foresee further growth of the pair which could close the trading week at 65.30. Nowadays, investors are on edge in the run up to the Fed’s monetary policy meeting. That is why all commodity currencies sensitive to rate decisions are weakening against the US dollar. https://www.instaforex.com
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